All Forum Posts by: Shari Posey

"I know operating expenses usually average out to be around 50% of the gross rent on properties under $50,000...I have found numerous condos for sale in my area (Phoenix AZ) for $30,000 -$35,000 (price includes any repairs) that rent for $700 a month."

Can you explain this in more detail? How could operating expenses equal half the rent? I guess maybe if it is professionally managed and has very high HOA dues, otherwise I don't understand this calculation.

I'm going to Vegas on Monday to look at some properties. I'm looking at some $30-40k condos that "supposedly" will rent for $650-750. I've looked at Craigslist and found some nice-looking apartment complex that rent at the low end of that scale, which worries me. I don't like HOAs either but they still cash flow at the low end of the rental market.

Any advice?? Any good or bad info about Henderson?

P.S. I only have $70k cash to work with, so I was thinking to buy 2 condos rather than 1 SFR.

My sister owns a vacation rental in Gulf Shores and my parents just sold one there. I don't know the specific numbers but I do know a few things--the unit must be on the sand with a full ocean view to rent well, you need to price it competitively low to keep it rented, and most importantly, you need to manage it yourself for it to make sense. My parents have owned on and off for many years in Gulf Shores and always did their own rentals (my sister does her own also) from long distance. They did not trust the rental companies to keep their unit rented.

I think your HOA dues estimate is too low. Additionally, my parents had to pay some special flood insurance to their mortgage company even though they were on the 8th floor--it was quite expensive. Check out rents on VRBO to see how much other units are renting for to calculate what you will get. Use the VRBO calendars to see how often units are renting.

I read Luc's Snowballing the other day. I just didn't know how real those figures were (I posted a question there) and if they are, where do you buy a note like that?

I just read Kevin's article and I guess I have the same question...where do you buy a partial note? Although I can see owning part of a note is a lot like joint tenants in a property, which may not be ideal compared to sole ownership.

I'm just beginning to learn about notes...high quality notes, non-performing 2nds, etc.

Is $25k too small to do anything in notes? I'm thinking of doing this rather than putting it as a down payment on another rental property. (Cash flow on the rental would be about $425 per mo.)

I have other funds available if I liquidated stocks but right now I want to get my feet wet.

If $25k is not too small, what would you buy and where do you find someone willing to sell to you?

Regarding Summerlin...How much would a typical $150k home rent for on the low end of the scale? I don't know the neighborhoods but there are tons of nice rentals on the internet in newer communities (less than 10 yrs old) for $1000-1300 per month.

@Monica--How many direct mail pieces do you send out, how often and what is your response rate? I've read it usually takes 6 pieces of mail before someone calls you, is that your experience? Buying 5 homes a month you must be sending out a lot. I'd love to see the copy on your piece if you care to share.

Please Vegas! It will be my first summit. Viva Las Vegas!

@Donna--I'm curious about about your opinion of the HOA dues and mello roos in Summerlin. I mean, I was told to watch out for those. Are the rents higher in those areas that would make up for that for buy and hold folks?

@Stephen S.--I agree with you about Vegas. I was referred to an agent there who works with investors and we talked yesterday...those $70k houses are now getting bid up and the sell for all cash plus need $5k+ work. He showed me pretty nice $114-130k houses that are renting from $1100-1300. He sees more upside in Vegas with the size of the population and employment, which may be correct. However, to me the numbers don't look much different that CA inland impire.